1. Managing Personal Communications Ivo John S. Dualan, MD AGSB MBA/H Batch 8

2. Outline Direct Marketing Interactive Marketing Word of Mouth Personal Selling (Sales Force)

3. Direct Marketing “is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen” Advantage: Market Demassification Source: Marketing Management; Kotler & Keller 13th ed.

4. Direct Mail Sending an offer, announcement, or reminder, to an individual customer. Uses highly selective mailing lists. 2% order-response rate Target market are much better prospects Recency Frequency Monetary Amount

5. Direct Mail Age Sex Income Education Previous mail-order purchases Occasions Hobbies Addresses

6. Examples of Direct Mail Eastman Kodak Co. Personalized postcards and business cards BPI Sends mail for housing loans and credit cards St. Luke’s Medical Center Sends mail and notices to previous patients for current offerings and new technologies available

7. Tips for the Mail Outside Envelope should contain an illustration or; a catchy reason to open – contest, premium, or benefit Sales Letter Brief, on quality paper, and should use a personal salutation Must be signed by an important person in company A colorful circular helps Should feature a toll-free number or website Postage free reply envelope dramatically increases response

8. Catalog Marketing Full-line merchandise Specialty consumer catalogs Business catalogs List of available services Combining websites and catalogs are an effective way to sell

9. Catalog Examples Land’s End & Ikea SM Chain of Supermarkets/Abenson Appliances Color Catalogs with prices and offerings weekly inserted in newspaper Belo Medical Group List of available services mailed to previous customers Catalogs for surgical instruments

10. Telemarketing Use of the telephone and call centers to attract prospects, sell to existing customers (outbound), and provide service by taking orders and answering questions (inbound) USAA – U.S. based insurance company PLDT or Sky Cable – calls to sell internet connection Clinic nurse or secretary calls up patient to follow up on care

11. Public and Ethical Issues in Direct Marketing Irritation Unfairness Deception & Fraud Invasion of Privacy

12. Interactive Marketing Use of the internet to reach customers Provides marketers and consumers with opportunities for greater interaction and individualization

13. Web Sites Web Sites must express or embody the purpose, history, products, and vision of the company Must be attractive on first viewing and interesting enough to encourage repeat visits

14. Web Sites Ease of Use Physical Attractiveness Downloads quickly First page is easy to understand Easy to navigate Pages are clean and not crammed Typefaces and font sizes are readable Good use of color and sound

15. Microsites A microsite is a limited area on the web managed and paid for by an external advertiser/company Usually used by companies with products of low interest e.g. auto insurance having a microsite on a car maker web site

16. Search Ads Based on interest on the search term Provides relevant links to products or services Very Specific

17. Display Ads/Banner Ads Small boxes containing text (and pictures) that companies pay to place in popular web sites.

18. Internet Specific Ads & Videos Consumers and Advertisers can upload ads and videos that can be shared by millions e.g. BMW Films (The Hire)

19. E-mail Only a fraction of the cost of direct mail Consumers may be besieged by e-mail Can be filtered as spam

20. Word of Mouth Consumers talk about dozens of brands each day Organizing these discussions into a network offers a more targeted market more likely to spread the brand message

21. Buzz & Viral Marketing Buzz marketing generates excitement, creates publicity, conveys brand related information through unexpected or outrageous means. e.g. The movie: The Passion of the Christ Blendtecvideo Local “scandals” involving Belo Clinics FG as a recurrent patient at SLMC or fugitives having themselves admitted at SLMC Outrageousness is a two-edged sword

22. Opinion Leaders People of influence within a group with a particular interest. Pharmaceuticals often utilize Key Opinion Leaders (KOL) to promote certain drugs

23. Word of Mouth Dos “Pay” with Feedback Insist on Openness Demand Honesty Help Customers Tell stories

24. Word of Mouth Don’ts Don’t Script Don’t Plan Don’t Sell Don’t Ignore

25. Blogs Blogs bring together people with common interests 1/3 of internet users have read blogs Some consumers use blogs as retribution against companies for bad service or products e.g. There are several blog sites for local hospitals in the Philippines

26. Personal Selling The original and oldest form of direct marketing is the Field Sales Call.

27. Designing the Sales Force Sales Force Objectives Sales Force Strategy Sales Force Structure Sales Force Size Sales Force Compensation

28. Principles of Personal Selling 6 Steps Prospecting and Qualifying Preapproach Presentation and Demonstration Overcoming Objections Closing Follow-Up and Maintenance

29. Sales Representatives Deliverer Order Taker Missionary Technician Demand Creator Solution Vendor

30. Summary Direct Marketing is Interactive Major Channels for Direct Marketing include personal selling, direct Mail, catalogs, the Internet, and telemarketing Interactive Marketing provides opportunities for greater interaction Word of Mouth marketing engages customers to discuss the product with others Sales Personnel serve as a company’s link to its customers

31. Managing Personal Communications Ivo John S. Dualan, MD